Tax study: Poor Alabama families pay highest state income tax

MONTGOMERY, Ala. (AP) — A new national study says a two-parent family of four living at the federal poverty line pays more state income tax in Alabama than in any other state.

The study released Tuesday by the Center on Budget and Policy Priorities said a family of four in Alabama that made the federal poverty level of $22,314 paid $498 in Alabama income taxes last year. The next closest states were Hawaii at $292 and Georgia at $238.

Alabama also ranked No. 1 for a single-parent family of three making the federal poverty line of $17,374. That family paid $343 in Alabama income taxes.

The executive director of the Arise Citizens’ Policy Project, Kimble Forrister, said the report is a reminder that Alabama’s tax system hits low-income residents hard.